Does Competition Lead Firms to Bribery? A Firm-Level Study in Southeast Asia

Does Competition Lead Firms to Bribery? A Firm-Level Study in Southeast Asia Economists have paid close attention to economic development in Southeast Asia, where corruption and bribery are believed to be ubiquitous. In this article, we study the reasons why firms bribe. Specifically, we study the effects of the competition encountered by Southeast Asian firms on their bribing behavior. This article focuses on two types of bribing behavior: (1) informal payments given to the government so that it will ignore rule violations and (2) informal payments to the government to secure a contract. Using firm-level and country-level data from Cambodia, Indonesia, Laos, Myanmar, the Philippines, and Vietnam between 2009 and 2014, we find that the market competition will increase bribing behavior, while political competition within the country will reduce the likelihood of bribing. http://www.deepdyve.com/assets/images/DeepDyve-Logo-lg.png Atlantic Economic Journal Springer Journals

Does Competition Lead Firms to Bribery? A Firm-Level Study in Southeast Asia

Loading next page...
 
/lp/springer_journal/does-competition-lead-firms-to-bribery-a-firm-level-study-in-southeast-XxgOqTqb7K
Publisher
Springer US
Copyright
Copyright © 2018 by International Atlantic Economic Society
Subject
Economics; Economics, general; Macroeconomics/Monetary Economics//Financial Economics; Microeconomics; International Economics; Public Finance
ISSN
0197-4254
eISSN
1573-9678
D.O.I.
10.1007/s11293-017-9566-2
Publisher site
See Article on Publisher Site

Abstract

Economists have paid close attention to economic development in Southeast Asia, where corruption and bribery are believed to be ubiquitous. In this article, we study the reasons why firms bribe. Specifically, we study the effects of the competition encountered by Southeast Asian firms on their bribing behavior. This article focuses on two types of bribing behavior: (1) informal payments given to the government so that it will ignore rule violations and (2) informal payments to the government to secure a contract. Using firm-level and country-level data from Cambodia, Indonesia, Laos, Myanmar, the Philippines, and Vietnam between 2009 and 2014, we find that the market competition will increase bribing behavior, while political competition within the country will reduce the likelihood of bribing.

Journal

Atlantic Economic JournalSpringer Journals

Published: Jan 29, 2018

References

You’re reading a free preview. Subscribe to read the entire article.


DeepDyve is your
personal research library

It’s your single place to instantly
discover and read the research
that matters to you.

Enjoy affordable access to
over 18 million articles from more than
15,000 peer-reviewed journals.

All for just $49/month

Explore the DeepDyve Library

Search

Query the DeepDyve database, plus search all of PubMed and Google Scholar seamlessly

Organize

Save any article or search result from DeepDyve, PubMed, and Google Scholar... all in one place.

Access

Get unlimited, online access to over 18 million full-text articles from more than 15,000 scientific journals.

Your journals are on DeepDyve

Read from thousands of the leading scholarly journals from SpringerNature, Elsevier, Wiley-Blackwell, Oxford University Press and more.

All the latest content is available, no embargo periods.

See the journals in your area

DeepDyve

Freelancer

DeepDyve

Pro

Price

FREE

$49/month
$360/year

Save searches from
Google Scholar,
PubMed

Create lists to
organize your research

Export lists, citations

Read DeepDyve articles

Abstract access only

Unlimited access to over
18 million full-text articles

Print

20 pages / month

PDF Discount

20% off